AUTOMOTIVE
Northvolt’s Chapter 11 filing was the latest victim of the EV adoption slowdown. With its main shareholders battling troubles of their own, it was a bad time to seek fresh capital. Operational issues clearly also factored. In a further setback for Europe, Ford announced plans to reduce its European workforce by 14%, mainly affecting Germany.
- Spreads underperformed at +9 for the week, with German OEMs now firmly in the high beta camp. Trump’s cabinet formation suggests tariff threats can’t be dismissed as pre-election bluster. Single name news flow was light.
- Sources told MNI that pay rises for IG Metall workers at Volkswagen will struggle to match those recently awarded at other employers. Public pronouncements remain far apart, with unions insisting on downsizing rather than outright factory closures. The union threatened strikes “not seen in a decade”, with obligations to refrain from industrial action ending on November 30th.
- September Eurozone Industrial Production data showed deterioration in Italy and Germany .
With hindsight Volkswagen, Stellantis and Renault did well to get primary away last week at good levels; the RENAUL and 10Y STLA are 9 wider to reoffer at the time of writing.
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